Minuk's Musings and How to be a Millionaire

Sometimes my clients will ask me to speak with their young adult children to get them started thinking about investing.

 

It can be daunting for those in their 20s and 30s who are faced with an expensive housing market, a rising cost of living and social media posts and TV shows full of rich kids in their private jets.

 

 

There is merit to their feelings of uneasiness because the 1^st $100k of savings is undoubtedly very difficult to accumulate.

 

If you invest $10k annually and your investment grows at a conservative rate of 7%, it would take 7.84 years to accumulate $100k.

 

However, the journey only gets easier from there due to the magic of compounding returns.

 

After accumulating your first $100k, the second $100k takes only 5.1 years to accumulate.

 

And fast forward 30 years to when the 20 year old kid is now 50 years old, they are accumulating an additional $100k roughly every single year.

 

Now who’s laughing.

 

 

This type of plan is simple, but it isn’t easy. It is very achievable, but it takes patience and consistency.

 

Most importantly for those delaying making their first investment, the earlier you start the sooner you’ll have your private jet.

 

Hope you have a nice weekend.

 

Rich

Investment Advisor